Does Stimulus Plan = New Jobs?

The $150 billion stimulus package is estimated to add 500,000 new jobs to the economy.  It is assumed that when people receive their rebate checks, that money will be spent, flowing back into the economy.  Businesses, especially retailers, will have to hire more staff to meet the increased demand.

However, many economists argue that businesses won’t hire permanent workers because many taxpayers will most likely quickly spend their one-time $600 rebate.  In addition to that, many companies are not going to change their hiring habits and procedures based on a one-time check to consumers.

According to CNNMoney.com, even economists who believe the stimulus plan will help the job market argue that it will be felt from limiting layoffs, not spurring hiring.

“I don’t think stimulus is going to cause a burst of hiring, it’s just going to prevent firing that might otherwise take place,” said Dean Baker, co-director of the Center for Economic and Policy Research.

There is even some concern that when taxpayers receive rebate checks, they will go to the mall and splurge so the rebate checks from Congress will go straight to China.

Do you believe the stimulus plan will bring new jobs?  Tell us what you think by adding to the comments below.

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The Next Pink Slip Might Be Yours

    

The state of Georgia reported that the unemployment rate in Metro Atlanta rose from 4.0 percent in November 2007 to 4.4 percent in December 2007.

For the entire state of Georgia, the unemployment rate rose from 4.2 percent in November to 4.6 percent in December said the Georgia Department of Labor, but this rate in Georgia is still below the U.S. unemployment rate of 4.8 percent.

The unemployment increase is largely due to job losses in construction, manufacturing, and other service related jobs.

The economic forecast was looking a bit grim and unemployment was expected to continue to rise, but the U.S. Department of Labor has reported Thursday, that applications for unemployment benefits decreased by 1,000.

However, the gloomy telltale signs of a weakening economy are becoming more and more evident as the first month in 2008 comes to a close.  An unusally high number of layoffs and company closings are being reported.  Lack of job creation and not to mention the stock market dive are all key indicators that…..Houston, we have a problem. 

Could it be that those 1,000 have reached their end for receiving unemployment benefits?

What does this say about the U.S. economy?  Are we really headed for a recession?

How do you prevent the next pink slip from being yours?

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